Adnoc Distribution, a key player in the global energy sector, has recently confirmed a new five-year dividend policy, ensuring robust returns for its shareholders. This strategic move, along with the appointment of new board members, was approved by shareholders and aligns with the company’s commitment to a forward-thinking growth strategy, heavily underpinned by artificial intelligence (AI), digitalization, and cutting-edge technology.
The newly established dividend policy for 2024-2028 pledges an annual dividend of $700 million or a minimum of 75 per cent of net profits, whichever is higher. In a significant move reflecting this policy, shareholders ratified a distribution of Dh1.285 billion in dividends for the second half of 2023, amounting to 10.285 fils per share, set to be paid in April 2024. This distribution elevates the total dividend for 2023 to Dh2.57 billion, translating to a yield of 5.6 per cent based on the share price as of March 27, 2024.
During an Investor Day in February 2024, Adnoc Distribution unveiled its new strategy that emphasizes domestic growth, expansion into international platforms, and a vision to future-proof the business. This strategy not only repositions the company in the dynamic energy landscape but also marks its transition towards becoming a leader in the sector.
A core component of this accelerated growth strategy involves increasing contributions from international operations, particularly in Saudi Arabia and Egypt, while actively seeking growth opportunities in new global markets. This includes expansion into additional sectors such as lubricants and LPG, pioneering sustainable transport solutions, and tapping into new markets worldwide.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of Adnoc Distribution, expressed his confidence in the company’s trajectory. He highlighted that since its initial public offering in 2017, Adnoc Distribution has offered a remarkable 90 per cent return to its shareholders through dividends and increased market value. “We have not only achieved our target of $1 billion in EBITDA for 2023 but have also laid the groundwork for our next phase of accelerated growth. Our new dividend policy is a testament to our sustainable growth and predictable cash flow, promising attractive returns to shareholders,” said Dr. Al Jaber.
He also emphasized the company’s pioneering use of AI in enhancing operational efficiencies and improving customer experiences. The deployment of AI and other advanced technologies is central to Adnoc Distribution’s strategy to unlock additional value for its business, shareholders, and customers.
Eng. Bader Saeed Al Lamki, CEO of Adnoc Distribution, further outlined the company’s ambitious goals under this strategy. These include expanding the service station network to 1,000 by 2028, growing non-fuel transactions by 50 per cent, increasing convenience stores by 25 per cent, and notably expanding its electric vehicle infrastructure to over 500 fast and superfast chargers by 2028.
The company has already made significant strides in incorporating AI and advanced technologies. Innovations like the AI-enabled ‘Fill & Go’ system and the pioneering test of an AI-operated autonomous refueling robotic arm are examples of Adnoc Distribution’s commitment to technology-led initiatives. Moreover, leveraging AI in fuel distribution has not only enhanced operational efficiency but also contributed to a 10 per cent reduction in carbon emissions, aligning with the company’s sustainability goals.
With these strategic initiatives and technological advancements, Adnoc Distribution is poised to redefine the energy sector, underscoring its role as a multi-energy mobility and convenience leader on the international stage.
